How Standard Variable Rate Affects Members
Our intermediaries understand more than most the impact of the Bank of England’s Base Rate rising over the past couple of years, to amounts not seen since 2008. This in turn has influenced lenders SVR rates, usually increasing in line with the Base Rate, and also other factors such as lender’s cost of borrowing. It is more important than ever to give members and clients the best interest rates as possible at each step of their mortgage journey. This page provides brokers with information about our SVR, including any updates that are taking place.
For detailed information on the Bank of England’s Base Rate click here
Monmouthshire Building Society, the SVR and our Members.
November 2023 – Update
On 2nd November 2023, the Bank of England announced that it was keeping the Base Rate at 5.25%.
We’ve continued to review our SVR, following the Bank of England’s decision to maintain the Base Rate at 5.25%. This rate is the highest it has been for a long period of time, with fourteen increases taking place since March 2020.
We’ve delayed passing on Base Rate rises to our members as much as possible. Since December 2021, we’ve only passed on increases when completely necessary and at a slower pace than the Base Rate. Our SVR has increased by 3.75%, and the Bank of England has increased the Base Rate by 5% during the same period. This is because as a mutual building society, we pass benefits onto our members with lower rates.
However, we’re now in a position that an increase to our mortgage SVR is needed. After careful consideration, the Society has taken the difficult decision to increase our SVR on mortgage accounts from 7.49% to 8.49%. (Click here for a link to L&C SVR watch).
- This SVR increase will take effect for existing members from December 1st, 2023.
- If your clients have a variable rate mortgage with us, their monthly payment will increase from December 1st, 2023.
- If they have a fixed rate mortgage, their monthly payment will not change.
We’ve written to all affected customers and would remind you, that for clients on standard variable rate, we have a variety of fixed and discounted products available to them, which may be more suitable.
We realise these are challenging times for members, partners, colleagues and communities, and would like to remind anyone who is struggling to meet their mortgage payments to contact us as soon as possible. We’ve signed up to the Government Mortgage Charter and have a range of options.
If your clients are concerned about making their payments or would like further help and advice on financial support click here please share this for organisations that can help.
Our 2023 Base Rate Updates can be found below
Bank of England Base Rate - September 2023 Update
Bank of England Base Rate Increase – August 2023 Update
Bank of England Base Rate Increase – June 2023 Update
Bank of England Base Rate Increase – May 2023 Update
Bank of England Base Rate Increase – March 2023 Update
Bank of England Base Rate Increase December 2022 – MBS SVR Rise in Response to this - February 2023
Bank of England Base Rate – December 2022 Update
For further Bank of England Base Rate change information in 2022 please visit our blog
